Looking for new opportunities

Grocon, one of Australia’s largest private developer/contractors, will pursue its funds management ambitions in a different way following the sale of its Melbourne office towers and the formation of a new strategic alliance with Colonial First State Global Asset Management.

“If we are to stay private, the capital base is only so large; this allows us to go out and create new opportunities,’’ said Grocon chief executive
Daniel Grollo
. “We want to recycle capital into development.’’

Earlier this year Grocon discussed, but rejected, a float of the assets.

Mr Grollo said the alliance with CFSGAM would allow Grocon to strategically expand its funds management footprint.

“It will allow us to access a new capital partner and we will benefit through an ongoing fee rebate arrangement, receiving a portion of the base fund management fees.